Research and Statistics

Existing-home sales fell 4.9% month-over-month to a seasonally adjusted rate of 4.08 million in January 2025. Year-over-year, sales improved 2.0%. According to NAR Chief Economist Lawrence Yun, “Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve. When combined with elevated home prices, housing affordability remains a major challenge.”

In January 2025, the Midwest, South, and West experienced month-over-month losses in transactions, with the most significant drop in the South, and the Northeast saw a modest gain. Year-over-year, contract signings fell in all four U.S. regions, with the South seeing the greatest falloff. According to NAR Chief Economist Lawrence Yun, "It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months. However, it’s evident that elevated home prices and higher mortgage rates strained affordability."